First GLS site in Toa Payoh in eight years attracts $968 mil bid from CDL, Frasers Property, and Sekisui House

With the launch of Tengah EC, residents will be able to access the amenities and services available in the neighbourhood. It is expected to be the leading eco-town development in the country. Residents can look forward to a variety of green internal spaces, including green gardens, parks, trails, and nature reserves. There will also be pedestrian-friendly pathways, which will connect this eco-town development to the surrounding areas. This eco-town development promises to be a true sustainable development.

Three major property developers have jointly submitted the highest bid for the Government Land Sales (GLS) site at Lorong 1 Toa Payoh. Frasers Property, City Development Ltd (CDL) and Sekisui House have made an offer of $968 million, or a land rate of $1,360 psf per plot ratio (ppr).

Their 50:25:25 partnership marks the first collaboration between the developers and indicates their bullishness to secure the site. Sherman Kwek, group CEO of CDL, affirmed their enthusiasm for the project: “We are delighted to be the top bidder for this rare District 12 site and honoured to have our first collaboration with Frasers Property and Sekisui House. Together with our partners, we look forward to tapping on our collective expertise to create an iconic development in the highly sought-after Toa Payoh estate.”

This is the first GLS site to be tendered in Toa Payoh in eight years, since the site neighbouring the 1.57ha parcel was developed into Gem Residences. Tanglin Land, a subsidiary of CapitaLand, submitted the second-highest bid of $819.99 million ($1,153 psf ppr).

Leonard Tay, head of research at Knight Frank Singapore, noted that the bids demonstrate developers’ willingness to be bullish in securing the site despite the seemingly less competitive nature of the tender which had only three bids, in comparison to other GLS tenders in 2022.

The development envisioned by CDL, Frasers Property and Sekisui House comprises two blocks of 40 storeys with approximately 800 residential units. Furthermore, the attractiveness of the location is enhanced by its proximity to Braddell MRT Station and its well-established neighbouring estate. SRI’s head of research and data analytics, Mohan Sandrasegeran, remarked that the extended hiatus from property launches in the area likely “created pent-up demand and development potential within the area.”

PropNex Realty’s head of research and content, Wong Siew Ying, believes the average selling price for the new project may range between $2,400 psf and $2,500 psf. This estimation is supported by EdgeProp Singapore’s Landlens tool, which casts an estimated selling price of $2,535 psf.

While the joint bid from CDL, Frasers Property, and Seikisui House surpassed some market watchers’ initial expectancy, some believe that the large size and subsequent higher quantum have deterred other developers from entering the race. Justin Quek, deputy CEO of OrangeTee&Tie, suggests that developers may prefer to consider smaller plots of land in the near future.

Nevertheless, as the winning bidder for this prime GLS site, CDL, Frasers Property and Sekisui House will invest in what may likely become an iconic development in the heart of Toa Payoh.